The bill amends existing New Mexico tax law to allow the disclosure of taxpayer return information to the staff of the Legislative Finance Committee. This is intended to facilitate the evaluation of programs that have a fiscal impact on the state or its political subdivisions. Specifically, a new section (7-1-8.12) is added, which outlines the conditions under which this information can be shared, including the requirement for a memorandum of understanding between the department and the Legislative Finance Committee to ensure confidentiality and security protocols. The bill also stipulates that any shared data must be aggregated to protect individual taxpayer identities and that the staff is prohibited from using the information for any purpose other than the specified evaluations.

Additionally, the bill amends Section 7-1-4.2, which outlines the New Mexico Taxpayer Bill of Rights, and Section 7-1-8, which addresses the confidentiality of taxpayer returns. The amendments reinforce the importance of protecting taxpayer information while allowing for necessary disclosures to support legislative oversight. The effective date for these provisions is set for July 1, 2025.

Statutes affected:
introduced version: 7-1-4.2, 7-1-21
Final Version: 7-1-4.2, 7-1-21, 7-1-76